About the company:
Bajaj Finance Limited is a leading non-banking financial company (NBFC) in India, offering a diverse range of financial services, including consumer lending, business loans, SME financing, mortgages, and credit cards. A subsidiary of Bajaj Finserv, it operates with a strong digital-first approach, leveraging technology to enhance customer experience and expand its reach across urban and rural markets. Known for its high growth, profitability, and stable asset quality, Bajaj Finance has a wide distribution network and a growing customer base, making it one of the most trusted financial institutions in India.
Key Business Highlights
Strong Loan Growth: ₹24,119 crore added to AUM in Q3, the highest ever.
Geographic Expansion: Added 14 new locations in Q3, total at 4,209 locations.
Gold Loan Growth: 1,000+ branches operational; focus on Tier 3 & Tier 4 cities.
Bajaj Finserv App: 67 million users, driving digital adoption.
New Airtel Partnership: 9 products launched on Airtel Thanks App by March 2025.
Asset Quality & Risk Management
Stage 2 & Stage 3 loan formation stabilizing at ₹608 crore in Q3 vs. ₹1,100 crore in Q1.
Tighter lending on unsecured loans: Company is pruning high-risk segments.
Credit Cost Outlook: Expected at 2.0-2.05% for Q4FY25, aiming for sub-2% in FY26.
Key Business Segments
Rural & SME Lending: Growth of 16% YoY, expected to increase 20-23% in FY26.
Consumer Loans (B2C & B2B): Urban B2C seeing lower default rates, but collection efficiency still improving.
Auto Financing: Two-wheeler & three-wheeler portfolio declining due to Bajaj Auto’s own financing arm.
Used Car Loans: Refinancing segment under stress, cut business by 30%.
Future Strategy & Outlook
FY26 AUM Growth Target: ~25% YoY.
Profit Growth: Aiming for 22-23% YoY in FY26.
NIMs & Cost of Funds: Stable; cost of funds expected to decrease by 4-5 bps in FY26.
Operational Efficiencies: AI-driven cost optimizations & branch expansions to improve productivity.
Credit Card Business: Co-branded partnerships with RBL & DBS to be discontinued, but company will continue earning revenue from existing cards.
Here is Bajaj Finance’s financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25)
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹13,940 Cr | ₹13,450 Cr | ₹12,880 Cr |
| Net Interest Income (NII) (₹ Cr) | ₹8,650 Cr | ₹8,400 Cr | ₹8,020 Cr |
| PAT (Net Profit) (₹ Cr) | ₹4,308 Cr | ₹4,240 Cr | ₹4,150 Cr |
| EBITDA Margin | 38.5% | 38.2% | 37.9% |
| ROA (Return on Assets) | 4.5% | 4.6% | 4.7% |
| ROE (Return on Equity) | 19.1% | 19.5% | 19.8% |
| AUM (₹ Cr) | ₹3.98 lakh Cr | ₹3.74 lakh Cr | ₹3.52 lakh Cr |
| New Loans Booked (Mn) | 12.0 | 11.5 | 10.8 |
| Customer Base (Mn) | 97.12 | 92.1 | 87.5 |
| Deposit Growth | 19% | 18% | 17% |
| Gross NPA Ratio | 1.12% | 1.08% | 1.05% |
| Net NPA Ratio | 0.48% | 0.46% | 0.44% |
| Credit Cost (₹ Cr) | ₹2,043 Cr | ₹1,970 Cr | ₹1,890 Cr |
| Capital Adequacy Ratio | 21.6% | 21.3% | 21.0% |
Recent updates:
Highlights from last concall:
Financial Performance Highlights
Assets Under Management (AUM): ₹3.98 lakh crore (+28% YoY)
New Loans Booked: 12 million, highest ever in a quarter
Customer Base: 97.12 million; on track to cross 100 million by FY25-end
Net Interest Income (NII): Grew 23% YoY
PAT (Net Profit): ₹4,308 crore (+18% YoY)
ROA & ROE:
ROA: 4.5% (vs. 4.9% in Q3FY24)
ROE: 19.1% (vs. 22% in Q3FY24)
Credit Cost: ₹2,043 crore (loan loss to AUM ratio: 2.16%)
GNPA / NNPA: 1.12% / 0.48%, slightly up YoY
Capital Adequacy: 21.6%, Tier-1 at 20.8%
Deposit Growth: 19% YoY